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$iShares TIPS Bond ETF (TIP.US)$ TIPS principal rises in lin...

TIPS rise in principal based on the inflation rate.
Interest payments also increase based on the inflation-adjusted principal.
Even with negative interest rates, TIPS adjust the principal in line with inflation, maintaining purchasing power protection.
Even with negative interest rates, the main purpose of providing protection against inflation is still fulfilled.
As inflation rises, the principal value of TIPS may increase, providing potential capital gains.
Even with negative interest rates, there is potential to achieve returns exceeding the inflation rate.
Due to low correlation with other asset classes, TIPS offer diversification benefits.
In the short term, negative interest rates may exist, but in the long term, inflation protection effects can be expected.
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  • アキバのヨッシー OP : We will analyze the yield when combining the five ETFs HYG, TIP, SJNK, GLDM, and VOO based on the provided information.

    The latest yield data for each ETF is as follows:

    1. HYG (iShares iBoxx High Yield Corporate Bond ETF): 5.67%

    TIP (iShares TIPS Bond ETF): 2.85%

    SJNK (SPDR Bloomberg Short Term High Yield Bond ETF): 6.50%

    GLDM (SPDR Gold MiniShares ETF): 0.00% (Gold ETFs usually do not have dividends)

    VOO (Vanguard S&P 500 ETF): 1.50%

    The expected yield for an equal allocation of these ETFs is approximately 3.304% based on the provided calculation results. This combination includes different asset classes such as bonds (HYG, TIP, SJNK), gold (GLDM), and stocks (VOO), which can be expected to provide diversification benefits. HYG and SJNK offer high yields but also come with high risks, TIP provides inflation protection, GLDM is subject to fluctuations in gold prices, and VOO is linked to the performance of the stock market.

    While GLDM does not offer dividends, capital gains can be expected from rising gold prices. VOO, in addition to dividends, also offers returns from stock price appreciation.

    An expected yield of approximately 3.304% can be achieved with an equal allocation of these five ETFs, but this figure only considers pure income (dividends).

  • ぴるさん : Wonderful👍

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